< Previous56 T E X A S E C O N O MI C DE V E L O P M E N T G U I DEfamilies here because of that. We are mindful of what the true cost of a regulatory environment is. How do colleges and universities in Texas support economic development?DANIEL: They play a tremendous role. They train the next generation of workers. They are doing that very thing right now. They have an impact on creation of new technology, and they create an ecosystem that supports the businesses that are already here. They are also creating the right kinds of incubators and focus areas that help businesses grow. A real strength in Texas is our community college system throughout the state. About 30 percent of Texans will go to a 4-year college or university, but many of the rest will go to 2-year community colleges to learn a trade. You can get the job you want much more quickly by pursuing that educational route. Our community colleges are very nimble and creative. What role do innovation and entrepreneurship play in the Texas economy?DANIEL: They are critically important. Small businesses in this state are frankly major employers. Half the state jobs are from small businesses. We are ranked highly in that category. If you look at the best cities for entrepreneurs, you will see Austin, Houston and San Antonio ranked very high on that list. Apple and Google and financial services firms here work with universities to create a great environment for innovation. T E X A S E C O N O MI C DE V E L O P M E N T G U I DE R O B E R T A L L E N I N T E R V I E When Robert Allen was named president and CEO of the Texas Economic Development Corp. on March 31, 2017, he came to the job with plenty of preparation. A er all, his previous post was deputy chief of staff for Gov. Greg Abbo .For a number of years, Allen has not just had a front-row seat to witness the dominating performance of Texas in economic development. He’s engineered much of it.In a recent interview with this publication, Allen shared his thoughts on Texas’ competitiveness and successes, and elaborated on how Texas will continue to tweak its strategy to ensure more best-in-nation performances in years to come.by RON STARNERWHow industrial diversi cation is rewriting the script of the Lone Star State economy.CHANGINGT HEPERCEPTIONOFTE X A S58 T E X A S E C O N O MI C DE V E L O P M E N T G U I DEWhat kind of success is Texas having at growing its target industry sectors?ROBERT ALLEN: Texas will forever be known as the energy capital of the world. Whether it is in LNG or partnerships in the energy field like the new ExxonMobil alliance that’s building a $10-billion project on the Gulf Coast, Texas will remain a leader in oil and gas. And we continue to evolve in that field. For example, the first female executive at Occidental Petroleum is Vicki Hollub. We have also had some amazing announcements in the technology field. Google is doing a $500-million data center on 375 acres in Midlothian. Apple is building a billion-dollar campus in Austin. And Google is taking up a 35-story office in Austin. In health-care news, McKesson is a Fortune 6 company that is moving to Irving-Las Colinas. What is happening in the areas of health-care research and biotechnology in Texas?ALLEN: Texas historically has not been well known in these fields, but that is changing. The Texas Medical Center in Houston — the largest medical center in the world and largest cancer center in the world — is taking 30 acres of undeveloped land and building an international hub for biomedical research called TMC3. Co-located at the site will be the Texas Medical Center, Baylor College of Medicine, Texas A&M University Health Science Center, The University of Texas Health Science Center, The University of Texas M.D. Anderson Cancer Center. Leading biopharma companies in the world and their researchers will converge at the site to create the third coast of biomedical research.How is the Governor’s University Research Initiative bolstering your economic development efforts statewide?ALLEN: GURI is a transformative initiative of Gov. Abbott. He announced it when he came into office, premised on matching funding with public Robert Alleninstitutions in Texas to a ract the best and brightest researchers. A great example is Dr. James P. Allison. He received the 2018 Nobel Prize. He was recruited back to M.D. Anderson with a CPRIT Grant. The Cancer Prevention Research Institute of Texas — CPRIT — is just one example of how we innovate.How important was winning the nationwide competition to land the headquarters of the PGA of America, as well as the championship golf courses and major events that come with it, in Frisco, Texas? ALLEN: It is tremendously impressive for us. It goes back to the diversifi cation of our economy. It proves that Texas is able to succeed in almost any category. With that project, it wasn’t just about the name. Having two new championship PGA golf courses built site-specifi c for this is game-changing for us. Couple that with what we are able to do in other sports, such as Formula One racing, and Downtown Houston Photo by Heather Overman60 T E X A S E C O N O MI C DE V E L O P M E N T G U I DEAustin, Texas Photo by Carmyn Suzoryou see how Texas is being elevated as a sports destination. In Texas, we saw landing the PGA headquarters as an opportunity to step up, meet the demand, and then deliver and surpass expectations.What is a common misperception of Texas?ALLEN: I hear often that the economy of Texas is not diverse and that it is only oil and gas. We have 25 MSAs with a diverse economy — a burgeoning tech sector, an incredibly strong manufacturing sector, a very strong health-care sector, etc. Texas makes up one of the most powerful economies in the country. I see this as an opportunity to educate people on our diversified economy.What is the central value proposition of Texas?ALLEN: It is simple. We have the 10th largest economy in the world. And when you play on a global stage, you have to have the endorsements of others. We do. The assets of Texas include the business connections we offer; the infrastructure that we have; our ability to connect companies to global and domestic markets; and the fact that you can reach both coasts in 24 hours or less. That’s why we have been named the Best State for Business by CNBC. We have been the best exporting state for 17 years in a row. We have the ability to connect you with opportunities anywhere on the globe. What is the global brand identity of Texas? What would you like it to be?ALLEN: I’d like it to be the fact that any company has the ability to go big in Texas, whether your business is small, medium or large. The brand now is that everything is bigger in Texas. We are proud of that. That’s how we brought space travel to Houston with the Johnson Space Center. I like to impress upon executives that small companies can make it big here. Small businesses employ over 2.4 million small businesses in Texas. At the same time, we have nearly 50 Fortune 500 companies headquartered in Texas. We have mid-caps, and we have a talent pipeline that is second to none, approaching 14 million strong. Based upon our past successes, we can confidently say that if you want to expand in Texas, it will be a positive experience for you. It is also important to note that, in Texas, it’s about the long game. Winning the project is not the final play. It’s the beginning of what should be a very long relationship. That’s how we view it in Texas. That’s why you’ve seen so many existing businesses choose to expand in Texas. Photo: Getty ImagesOccidental CEO Hollub describes how her global rm is built for the long haul.hen Vicki Hollub took over as president and CEO of Occidental Petroleum in April 2016, she became the fi rst woman to head a major American oil company.Today, Occidental continues its robust growth in the international oil industry, reaching a market capitalization of $56.4 billion at the end of last year. With operations in the United States, the Middle East and Latin America, Occidental is positioned to be a global player for decades to come.In a recent interview, Hollub talked about doing business in Texas and what it’s like to lead a major American oil company that’s based in Houston.How does the tax and regulatory climate in Texas facilitate corporate growth and expansion in the state?VICKI HOLLUB: Texas has one of the lowest tax burdens in the United States, with no state, corporate or personal income tax. Commerce is rooted in a business-friendly regulatory climate that encourages job growth and economic development, which makes Texas an attractive place to do business for companies of all sizes. Occidental is appreciative of this business-friendly environment as it supports the success of companies like ours so we can recruit and retain top-notch talent, maximize value for WStayingV IC K I H O L L U B IN T E R V IE WPowerby RON STARNER T E X A S E C O N O MI C DE V E L O P M E N T G U I DE64 T E X A S E C O N O MI C DE V E L O P M E N T G U I DEstakeholders and reinvest in the communities we operate in as we strive to be a Partner of Choice®. You were involved in leading Occidental’s expansion into the Permian Basin, which has proven to be a game-changer for American energy independence. How significant has that been?HOLLUB: The Permian Basin is foundational to Occidental, as we are one of the largest oil producers and acreage holders there. The Permian is huge and has the capability to sustain its current position with respect to the rest of the world for probably another decade or two at least, so there is significant potential remaining. Occidental has more than 50 years of reserves remaining in the Permian, and I would not be at all surprised to find Occidental still here in 100 years. Just as I expect the Permian Basin to be the last U.S. basin standing, Occidental will be the last company standing.You are the first woman to head a major American oil company. What does that say about your company, and what does that mean to you?HOLLUB: Occidental’s culture is unique in that we try to make sure everybody has the opportunity to contribute and make us a stronger company. We encourage innovative thinking, smart risk-taking and ownership so people feel empowered to improve processes and achieve better results.I have been with Occidental for over 30 years and have taken advantage of every opportunity presented to me, from working in the field, on the rigs and in various parts of the world, and taking on leadership positions along the way. There is something to be learned from every person you encounter and every job you tackle — it is these collective opportunities and the people I have met that have contributed the most to my career path.How does being headquartered in Houston help your company thrive?HOLLUB: Houston is an international hub for business and trade that is home to more than 20 Fortune 500 companies. The city has a concentration of energy companies, and is also known for its aerospace, information technology and health care “In 2014, Occidental moved its headquarters to Houston as it brought us closer to the heart of our operations and the people who work in the oil fields of the Permian Basin. Given the state’s business-friendly nature, we have not looked back.”– Vicki Hollub, President & CEO, Occidental PetroleumNext >